Sustainable Power Solutions Investments (SPS) has received $40 million to provide cleaner and affordable solar energy across sub-Saharan Africa.
The investors in the round included Gridworks, a UK-based developer that invests in African electricity networks and New GX, an investment firm based in South Africa.
SPS funds, develops, builds and operates solar power technologies, such as battery storage, to provide consistent, affordable and clean energy in partnership with commercial and industrial (C&I) clientele across sub-Saharan Africa.
The cleantech company affirms to have over 45MW of solar and above 15MWh of battery storage currently in operation and under construction and plans to add 100MW projects.
These are spread across countries like South Africa, Namibia, Kenya and Indian Ocean islands, in the hospitality, telecoms, retail and other sectors.
Through the investment, Gridworks has become a majority shareholder in SPS, and New GX will replace current minority shareholders Trigen Group and Genfin.
The funding received by SPS will facilitate the company’s acceleration in existing markets and expand across other markets in Sub-Saharan Africa.
Gridworks is also investing an additional $9,000,000 to become a majority shareholder in the company. This brings Gridworks’ total commitment to SPS in this transaction to $31 million.
Expressing the company’s ecstacy, the CEO of Gridworks Simon Hodson had this to say:
“We’re delighted to become the majority shareholder in SPS and support the company in the next stage of its development. Since first investing in 2019, we’ve helped the company become one of only a small set of African developers operating sustainably to finance, build, and operate grid-tied and battery-backed, off-grid systems. We’re excited that New GX Capital has decided to invest in the business alongside us. They have a wealth of experience in long-term infrastructure investments and will be a strong partner who shares our ambitions for SPS. Their investment and expertise will be invaluable as SPS expands into new markets across Africa.”
He said Gridworks was built to increase the quantity and quality of power in Africa. Its mandate covers transmission and distribution infrastructure, as well as off-grid solutions like SPS. “SPS, and the C&I sector as a whole, can provide green, reliable power to businesses that will go on to create jobs and economic opportunity.”
Khudusela Pitje, CEO of New GX Capital added that the company was delighted to partner with SPS and Gridworks to unlock the companies’ renewable energy vision in the commercial and industrial sector across the continent. “We will bring our in-depth knowledge as an infrastructure investor and increase SPS’s footprint in the telecoms and industrial sectors. We are driven by a sustainable tomorrow which we believe will also drive industrialisation within the continent, ” he said.
Francois Van Themaat, CEO of SPS also highlighted his delight and gratitude, saying:
“We are thankful to Gridworks and CDC Group for their continued strong support of our business. Their initial investment was made just as the world went into lockdown due to the COVID pandemic and their support allowed us to grow our business rapidly during a very challenging period.”